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MUMBAI: JSW Group‘s four listed companies have told stock exchanges that rape allegations against chairman Sajjan Jindal have “no material impact” on their operations.
JSW Steel, JSW Energy, JSW Infrastructure and JSW Holdings made these remarks in response to the stock exchanges’ query seeking clarification on reports that an FIR alleging rape has been filed against Jindal in Mumbai.
Shares of the four companies fell up to 5% on Monday, a day after Jindal termed the allegations as “false and baseless”. The stocks pared most of the losses from an early slump with JSW Energy and JSW Infras closing marginally higher.
Sebi rules require a listed company to make disclosures to stock exchanges of an occurrence of an event based on its material impact on the company. Securities lawyers said that in certain instances whether the information is material or not is left to the discretion of the company’s board. They added that an FIR filed against a board member of a company is not considered as material information. However, an arrest of a key management person, promoter or director is, according to Sebi rules.
JSW Steel, JSW Energy, JSW Infrastructure and JSW Holdings made these remarks in response to the stock exchanges’ query seeking clarification on reports that an FIR alleging rape has been filed against Jindal in Mumbai.
Shares of the four companies fell up to 5% on Monday, a day after Jindal termed the allegations as “false and baseless”. The stocks pared most of the losses from an early slump with JSW Energy and JSW Infras closing marginally higher.
Sebi rules require a listed company to make disclosures to stock exchanges of an occurrence of an event based on its material impact on the company. Securities lawyers said that in certain instances whether the information is material or not is left to the discretion of the company’s board. They added that an FIR filed against a board member of a company is not considered as material information. However, an arrest of a key management person, promoter or director is, according to Sebi rules.
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